Coca-Cola Co (KO): Today's Featured Food & Beverage Laggard

Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.

Coca-Cola ( KO) pushed the Food & Beverage industry lower today making it today's featured Food & Beverage laggard. The industry as a whole closed the day up 0.1%. By the end of trading, Coca-Cola fell $1.05 (-2.7%) to $37.56 on heavy volume. Throughout the day, 30.5 million shares of Coca-Cola exchanged hands as compared to its average daily volume of 13.7 million shares. The stock ranged in price between $37.28-$38.16 after having opened the day at $38.11 as compared to the previous trading day's close of $38.61. Other companies within the Food & Beverage industry that declined today were: Diamond Foods ( DMND), down 7.8%, Origin Agritech ( SEED), down 6.9%, Crumbs Bake Shop ( CRMB), down 4.8%, and Snyders-Lance ( LNCE), down 3.3%.
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The Coca-Cola Company, a beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. Coca-Cola has a market cap of $173.89 billion and is part of the consumer goods sector. The company has a P/E ratio of 20.2, above the S&P 500 P/E ratio of 17.7. Shares are up 7% year to date as of the close of trading on Monday. Currently there are 11 analysts that rate Coca-Cola a buy, one analyst rates it a sell, and five rate it a hold.

TheStreet Ratings rates Coca-Cola as a buy. The company's strengths can be seen in multiple areas, such as its solid stock price performance, revenue growth, reasonable valuation levels, expanding profit margins and good cash flow from operations. Although the company may harbor some minor weaknesses, we feel they are unlikely to have a significant impact on results.

For investors not wanting singular stock exposure, ETFs may be of interest. Investors who are bullish on the food & beverage industry could consider PowerShares Dynamic Food & Beverage ( PBJ) while those bearish on the food & beverage industry could consider PowerShares DB Agriculture Sht ETN ( ADZ).

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